Insidenova.com: A bipartisan coalition of Virginia lawmakers on Tuesday presented a series of bills aimed at addressing the rapid expansion of data centers, which have become a cornerstone of the state’s economy but have raised concerns about energy use, environmental impact, and equitable cost distribution.

Gov. Glenn Youngkin highlighted the industry’s importance during his State of the Commonwealth address Monday, noting that “data centers alone support 74,000 jobs, bring in $9.1 billion in Virginia GDP, and generate billions in local revenue.” He called for Virginia to remain “the data center capital of the world” while ensuring state support for the industry.

However, lawmakers from both parties have emphasized the need for oversight to ensure the industry’s growth is managed responsibly.

FXBG Advance: The public was first made aware of the possibility of data centers in Celebrate VA when Mayor Devine added the topic to the July 9, 2024 Council agenda, giving the public no prior notice that the topic was to be discussed. Well before that announcement, council members had toured data centers in February, two at a time, to avoid public notice.

Also, prior to the July 9th meeting the City Manager initiated discussion with a developer to provide land for data centers.

In September the City Council supported the expenditure of $200,000 to study the infrastructure needs to provide power for data centers in Celebrate VA. A cost that should not be the responsibility of the city but by either Dominion Power or the developer. When questioned about this City Manager Tim Baroody confirmed it was not the city’s responsibility but explained that it was being done at the direction of the City Council.

Delegate Ian Lovejoy (R-22, Prince William County) has introduced a suite of legislative proposals targeting the rapid proliferation of data centers in Northern Virginia, addressing concerns about campaign finance, land use, and energy infrastructure. The legislation, rooted in what Lovejoy calls "common sense reforms," aims to tackle issues of public confidence, community impact, and the strain on utilities.

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In this episode of the Potomac Local News Podcast, Delegate Ian Lovejoy joins us from Richmond to discuss key issues impacting Virginia residents:

Richmond’s Water Crisis: Hear about the ongoing water outage in Richmond, its effects on families, businesses, and schools, and what it means for state leadership as former Mayor Levar Stoney campaigns for Lieutenant Governor.

Data Center Development: Delegate Lovejoy explains his legislative efforts to address the rapid expansion of data centers in Northern Virginia, including:

• Prohibiting officials from voting on projects tied to campaign donors.
• Establishing zoning reforms to protect schools, parks, and residential neighborhoods.
• Proposing a moratorium on new data centers and revisiting tax incentives.

Energy Infrastructure Concerns: Learn how unchecked data center growth could threaten Virginia’s power grid by 2030 and what steps are needed to prevent a crisis.

This in-depth conversation explores the challenges facing Virginia communities and the solutions Delegate Lovejoy is working to implement.

Subscribe for more updates on local news and issues affecting Virginia.

You’ll learn about:

• 1:15 – Richmond’s Water Crisis
• 4:30 – Data Centers and Campaign Donations
• 7:45 – Zoning Reforms and Community Impacts
• 10:30 – Power Grid Concerns and Tax Incentives

Join the conversation and share your thoughts in the comments.

The Fredericksburg City Council has announced a series of public meetings and work sessions as it considers approving the city’s first data centers within a newly proposed Technology Overlay Zoning District (TOD). The meetings aim to gather public input and provide transparency as the city plans to encourage high-technology industrial development in Celebrate Virginia South, next to the Fredericksburg Nationals baseball stadium.

While the council is promoting data centers as an opportunity for economic growth, concerns from local activists and experts highlight potential challenges, including environmental and community impacts.

Upcoming Public Meeting Schedule

The City Council and Planning Commission will host several sessions, inviting residents to participate and voice their opinions:

• January 14, 2025: Joint Work Session, 5:30 PM, followed by a Regular Session at 7:30 PM to initiate a Unified Development Ordinance Text Amendment (UDOTA) and Comprehensive Plan Amendment.
  Location: Council Chambers, City Hall, 715 Princess Anne Street.
• January 22, 2025: Joint Meeting with Planning Commission and City Council, including a Public Input Session from 5:30 PM to 7:30 PM, followed by the Planning Commission’s Regular Session.
  Location: Council Chambers, City Hall, 715 Princess Anne Street.
• February 12, 2025: Planning Commission Public Hearing, 6:30 PM to 8:30 PM.
  Location: Council Chambers, City Hall, 715 Princess Anne Street.
• February 25, 2025: City Council Public Hearing, 7:30 PM.
  Location: Council Chambers, City Hall, 715 Princess Anne Street.

Community Concerns 

Bill Wright, a data center activist from Prince William County, and Dr. Eric Bonds, a professor at the University of Mary Washington, shared their perspectives on the potential drawbacks of data center development in a recent Potomac Local News Podcast interview. Their insights shed light on issues Fredericksburg residents may wish to consider as public discussions begin.

Wright, who has been actively involved in addressing data center explosion in nearby Prince William County, emphasized the environmental implications of such projects. “These data centers are energy-intensive and require massive cooling systems, which often rely on water resources. Communities need to consider the long-term impact on their local water supply and ecosystems,” Wright said.

Bonds echoed Wright’s concerns, pointing to the strain data centers could place on energy infrastructure. “Data centers consume an enormous amount of electricity, often leading to increased greenhouse gas emissions unless renewable energy is prioritized,” Bonds explained. He also raised questions about the compatibility of data centers with Fredericksburg’s urban character. “We need to ask ourselves if this type of industrial development fits with the vision residents have for their community.”

Both Wright and Bonds stressed the importance of transparency and public involvement in the decision-making process. “Communities need to have a real seat at the table to ensure their concerns are heard and addressed,” Wright said.

Balancing Growth and Preservation

Fredericksburg City Council’s efforts to attract high-tech industries aim to bolster economic growth, but the concerns raised by activists and experts underline the need for careful planning. The proposed Technology Overlay Zoning District would allow by-right data center development in Celebrate Virginia South, an area identified as suitable for high-tech facilities due to its existing infrastructure.

However, Bonds noted that such developments must align with broader community goals. “Economic development should not come at the expense of environmental sustainability or quality of life. It’s a delicate balance that requires thoughtful policies,” he said.

A recent report by the Joint Legislative Audit and Review Commission (JLARC) warns that if data center development in Virginia continues without constraints, the state’s energy demands could triple. The report emphasizes that meeting these increased demands would necessitate the construction of additional energy facilities, including renewable sources like solar and offshore wind, as well as natural gas plants. Specifically, JLARC estimates that a new natural gas plant would need to be built approximately every one and a half years to keep pace with the energy consumption of unconstrained data center growth.

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In our latest episode of the Potomac Local News Podcast, we tackle the complex and controversial topic of data centers and their growing presence in our region. Joining the conversation are two experts with unique perspectives: Bill Wright, a data center activist from Prince William County, and Dr. Eric Bonds, a professor at the University of Mary Washington and a concerned Fredericksburg resident.

Fredericksburg City Council recently held a work session to discuss an ordinance that would allow data centers within the city limits for the first time, focusing on a 250-acre site at Celebrate Virginia South. The proposed timeline is ambitious, with plans to finalize the ordinance as early as February 2025. While data centers promise potential economic benefits, including increased tax revenue, concerns about their environmental and community impact have sparked significant debate.

In this episode, we explore:

• Community Impacts: Dr. Bonds outlines how the proposed digital overlay zone would surround residential areas, including an apartment complex and retirement communities, raising questions about compatibility and quality of life.
• Lessons Learned: Bill Wright shares insights from Prince William County, where data center developments have led to environmental challenges, lawsuits, and a lack of transparency.
• Economic Realities: While data centers generate tax revenue, our guests discuss the hidden costs, including legal fees, infrastructure demands, and environmental compliance, which often go uncalculated.
• Climate Considerations: Dr. Bonds raises concerns about the energy-intensive nature of data centers and how they conflict with local and state commitments to renewable energy and environmental stewardship.
• Whether you’re a Fredericksburg resident, an environmental advocate, or simply curious about how data centers impact communities, this episode offers an in-depth look at these developments’ challenges and opportunities.

The Fredericksburg City Council held a work session on December 10 to discuss a proposed ordinance allowing the city to develop data centers.

The discussion focused on creating a data center overlay district, with the Celebrate Virginia South area next to Virginia Credit Union Stadium, home of the Fredericksburg Nationals, being the primary proposed location. The ordinance would establish zoning, performance standards, and environmental protections for the potential development.

The proposed overlay district encompasses approximately 250 acres, with a minimum campus size of 150 contiguous acres required for development. “We are looking at focusing on that Celebrate Virginia South area,” said Economic Development Director Josh Summits, who presented the proposal to the council. He described the overlay as a zoning concept to promote technology sector growth while maintaining compatibility with the city’s infrastructure and open space preservation goals.

Data centers have become commonplace in surrounding counties to the north, south, and west. The server farms that power the internet take up acres of land, consume large amounts of electricity to power the computer servers inside, and require massive amounts of water to cool the systems.

The server farms create few jobs but are said to generate significant tax revenues for localities.

Key Details of the Proposal

dThe ordinance includes several provisions to address environmental and community concerns:

• Noise Standards: Noise levels would be capped at 60 decibels during the day and 55 decibels at night, with emergency generator testing limited to daylight hours.
• Water Usage: Developers would be prohibited from using potable water for industrial cooling, except temporarily, until a reused water system is implemented.
• Building Design: Data centers would be limited to a maximum height of 90 feet, requiring design elements to break up large facades.
• Additionally, buildings must not be visible from the Rappahannock River.
• Setbacks and Landscaping**: The ordinance would require 150-foot setbacks from residential areas and 100-foot setbacks from commercial areas, along with landscaped buffers and preserved green space.

Aggressive Timeline

The timeline for approving the ordinance is notably fast-paced. The first joint work session with the Planning Commission is planned for January 14, 2025, with public hearings potentially concluding by late February.

“This is the most aggressive schedule that I’ve ever seen put to paper,” said one council member. They emphasized the importance of feedback: “If you all like what you’ve seen, please tell us. If you don’t, please tell us that, too.”

Another council member supported the schedule, describing it as “aggressive but necessary.” They added, “I’m okay with the timeline because I think it gives enough time for the public to get up to speed and give us their input.”

However, concerns were raised about how the timeline aligns with an ongoing feasibility study funded by the Economic Development Authority. Early results are expected in December, with the full report anticipated by late January. The study will compare the economic impact of data centers to other development options, such as mixed-use housing.

The timeline reflects a push by the landowner of the Celebrate Virginia South parcels, who appears to be motivated to move forward with the project swiftly. The city council did not name the landowner.

Questions About Campus Design

Council members also sought clarification on the design and scope of the proposed data center campuses. A campus would require a minimum of 150 contiguous acres, but the overlay district includes 250 acres outside protected open space.

“Can you describe what defines a campus? And what happens to the additional acreage that might not be needed?” asked one council member. Summits explained that clustering data centers would allow developers to share infrastructure costs while maximizing scalability. “It’s about scale and clustering,” he said.

Public Engagement Emphasized

Council members and city staff highlighted the importance of public input. The City Council and Planning Commission will work closely during joint sessions in January to ensure the public remains informed. The JLARC (Joint Legislative Audit and Review Commission) report on data centers will also be made available on the city’s website to provide additional context.

The City Council is expected to revisit the topic in January, with further discussions scheduled alongside the Planning Commission. Public hearings are planned for February to allow residents to weigh in on the proposal.

The council’s decision will play a significant role in shaping Fredericksburg’s economic and environmental landscape, as data centers bring the potential for increased tax revenue but also raise concerns about land use, infrastructure, and environmental impacts.

As Prince William County grows, officials highlight the need for new water sources to meet future demand. A primary concern is the expansion of data centers, which have become a significant consumer of water.

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The Joint Legislative Audit and Review Commission released its long awaited report on data centers Monday, detailing the expected soaring energy demands and large economic benefits of the industry ahead of the 2025 General Assembly session.

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